8/31 AMA Recap — Partnerships, Multi-Chain Expansion, AI Integration, and more!
On Aug 31, 2023, the Lithium Finance community gathered on Discord for a text AMA with 3 key council members: 0xYSB#9492, chiroz. and dogemars245#1734.
They took center stage as they shared exciting updates about Lithium Finance and engaged in an in-depth dialogue with community members.
Key Highlights from the AMA:
- Partnership with AI company Peasy Labs to enhance NFT valuation capabilities. A new service is launching soon on NFTCheatSheet.ai.
- Completion of Lithium Finance DAO Council formation. Assets and contracts transferred, paving the way for community-driven growth.
- Upcoming developments include new partnerships, multi-chain expansion for $LITH token on ETH and ARB, mechanics upgrades, and community feedback integration.
- Consideration of integrating ChatGPT for real-time NFT price estimates on the platform.
- Emphasis on using $LITH token for governance and decision-making throughout the DAO.
DAO Proposal Feedback
The AMA also involved the Council Members providing feedback on two proposals from the Lithium Finance DAO Forum:
Referral Program Proposal from Lex:
The proposal suggests implementing a referral program to enhance community engagement and boost the value and utility of $LITH tokens.
- 0xYSB#9492 acknowledged the potential benefits of increasing ecosystem participation but expressed concerns about focusing too heavily on incentivizing token purchases. He explained that a referral program rewarding token buys could be perceived negatively like multi-level marketing and also poses risks of cheating. Instead, he recommended designing incentives aimed at bringing new users into the community and having them engage with the protocol’s offerings.
- chiroz. also had mixed thoughts on the referral proposal. He agreed that driving new user sign-ups makes sense but cautioned that requesting token purchases as part of the incentive could be misconstrued as a scam-like tactic. However, he did recognize that increased wallet sign-ups and usage could indicate genuine user adoption and engagement. Overall, he felt existing mechanisms like reputation points should be considered before introducing a new referral program focused on buying behavior.
Staking Proposal from Polarbull:
The proposal suggests integrating a staking feature into Lithium Finance to enhance the project’s growth and bring stability to the token’s price.
- 0xYSB#9492 acknowledged the benefits cited in the proposal but advised exercising caution with staking rewards given potential regulatory and compliance issues that may arise. He recommended that if a staking program were to be implemented, the focus should be on encouraging ecosystem participation rather than passive income generation. He also requested input from chiroz. on the governance implications of a staking model.
- chiroz. concurred with being mindful of staking reward structures, noting that without actual fees or yields yet, rewards could simply inflate the token supply. However, he felt integrating staked tokens into governance could provide value. Overall, he emphasized the importance of evaluating risks before moving forward.
The AMA featured an extensive community Q&A session that allowed participants to engage with the council members.
Question from Donald:
What mechanisms or incentives are in place to encourage active participation and engagement from the community in the decision-making process for the development of Lithium Finance?
Council member chiroz.:
Several mechanisms are in place to encourage active community participation in the decision-making process.
The Lithium Finance DAO has established a dedicated forum where community members can create and discuss proposals. This forum serves as a platform for open and transparent discussions, allowing community members to express their thoughts, concerns, and suggestions regarding proposed changes. It provides an opportunity for diverse perspectives to be heard and considered.
Proposals developed on the forum then move to the voting stage on Snapshot, a decentralized platform for voting and decision-making. This platform ensures that all token holders have an equal opportunity to participate in the voting process, fostering inclusivity and democratic decision-making within the community.
At present, there are no direct economic benefits associated with participating in voting or forum discussions. However, the DAO recognizes the importance of incentivizing community engagement and is open to exploring ideas related to incentivizing participation. The community’s input and ideas on potential incentives for encouraging active involvement are highly encouraged and welcomed.
Question from Nameless Otaku:
What do you guys plan to enact marketing to bring in more users, more adoption and more scrutiny to help the project? What do you envision the marketing push will look like?
Also do you guys still have plans to add stocks to the Pricing like what was in the original white paper?
Council member 0xYSB#9492:
Thanks for the great question!
I think of the current application of NFT valuation as a pilot test and validation of Lithium’s AI and collective intelligence technology.
There is no reason why the tech couldn’t be applied to other asset classes and expanded user base.
While the newly set up council does not yet have a complete time table on use case expansion, but that’s certainly something that’s on our agenda
Question from memberC&Jay ♪:
What measures does Lithium finance have in place to prevent manipulation or misuse of it’s valuation system?
Council member dogemars245#1734:
Lithium Finance has implemented several measures to prevent manipulation
Opinion Sourcing: We gather pricing opinions from a community of experts through our pricing quests. By sourcing opinions from a diverse group, it reduces the risk of individual bad actor
Prediction Clearing: The protocol summarizes community predictions into a single consensus. Users are rewarded based on the proximity of their estimates to the consensus. It also takes into consideration the confidence level and historical performance of price experts, which helps to ensure that reliable and accurate estimates are given more weight.
Staking and Reputation Points (RP): Price experts stake their reputation points and participate in the Pricing Quests. The RP serve as an additional incentive for accurate estimation, as good estimates are rewarded with positive reputation point adjustments, while poor estimates can result in reputation point reductions
Community Governance: The protocol follows a governance process where the community actively participates in decision-making. This helps ensure transparency and accountability in the valuation system and reduces the risk of centralized manipulation.
These are some of the measures that the protocol as taken to create a robust and reliable valuation systems
While it also allows us to leverage the wisdom of the crowd to determine market prices for NFTs within the ecosystem
Question from Heymich:
What are the key factors you consider when evaluating potential partnerships or collaborations for Lithium?
Council member 0xYSB#9492:
When evaluating potential partnerships or collaborations, Lithium Finance considers several key factors. First and foremost, alignment of vision and goals is essential. The project seeks partnerships with entities that share the same commitment to helping investors make better decisions and embracing AI and collective intelligence.
Another factor is expertise and domain knowledge. Lithium Finance looks for partners that bring unique insights, experience, or technological capabilities that can enhance the protocol’s offerings. Collaborating with organizations or individuals who have a deep understanding of certain asset classes, AI, or decentralized finance can bring valuable perspectives to the table.
Furthermore, the integrity and reputation of potential partners play a crucial role. Lithium Finance values trust and transparency and seeks partnerships with entities that uphold similar principles. By partnering with reputable organizations and individuals, Lithium Finance can foster a trustworthy ecosystem and build confidence among its user base.
Question from Ken_:
Could the council members elaborate on the technological differentiators that set Lithium Finance apart in the DEFi space? How does the project plan to stay at the forefront of innovation to offer unique value to its users over the long term?
Council member chiroz.:
Lithium Finance stands out in the DeFi space due to its technological differentiators. One key differentiator is the integration of AI and machine learning algorithms into the asset valuation process. By leveraging these advanced technologies, Lithium Finance can analyze large sets of historical market data and provide accurate valuations for illiquid assets like NFTs.
The project’s commitment to collective intelligence sets it apart as well. Lithium Finance recognizes the value of human expertise and actively involves the community in the decision-making process. By incentivizing community participation and aggregating inputs, the protocol harnesses the wisdom of the crowd to produce robust and comprehensive valuations.
To stay at the forefront of innovation and offer unique value over the long term, Lithium Finance emphasizes continuous research and development. The project invests in improving its AI algorithms, refining its data analysis techniques, and exploring new methodologies for asset valuation. By staying proactive and adaptive to emerging trends and technological advancements, Lithium Finance aims to remain a leader in the field and deliver ongoing value to its users.
An Exciting Time Ahead for the Lithium Community!
The coming months are going to be an impactful time for Lithium Finance. With partnerships, integrations, upgrades, and other developments on the horizon.
We anticipate these changes will create new value and utility within the Lithium ecosystem. The hard work being done to evolve the protocol demonstrates the team’s commitment to continuous innovation.
As Lithium enters this new era of growth, we hope to see the community’s steadfast support and engagement. Your involvement in the forum provides crucial guidance. By coming together, we can transform ideas into real achievements.
The road ahead is full of fun. Let’s continue working as one to turn Lithium Finance into an industry leader in DeFi. Exciting times are ahead!
Make an impact at Lithium DAO Forum: https://forum.lith.finance.
Full AMA script at https://discord.gg/lithiumfinanceofficial